Kennametal Inc (KMT)
Payables turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,419,805 | 1,422,401 | 1,427,991 | 1,426,499 | 1,431,745 | 1,417,540 | 1,397,057 | 1,376,544 | 1,364,479 | 1,344,386 | 1,331,230 | 1,316,490 | 1,288,963 | 1,226,292 | 1,217,875 | 1,271,959 | 1,355,835 | 1,468,466 | 1,531,518 | 1,547,252 |
| Payables | US$ in thousands | 191,541 | 192,769 | 193,002 | 197,369 | 203,341 | 197,158 | 206,722 | 205,940 | 227,887 | 197,687 | 185,857 | 177,077 | 177,659 | 164,481 | 134,153 | 136,076 | 164,641 | 165,062 | 173,160 | 198,674 |
| Payables turnover | 7.41 | 7.38 | 7.40 | 7.23 | 7.04 | 7.19 | 6.76 | 6.68 | 5.99 | 6.80 | 7.16 | 7.43 | 7.26 | 7.46 | 9.08 | 9.35 | 8.24 | 8.90 | 8.84 | 7.79 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,419,805K ÷ $191,541K
= 7.41
The payables turnover ratio for Kennametal Inc has shown some fluctuations over the past few quarters. Generally, the company's ability to pay off its trade payables within a certain period has been relatively stable, averaging around 7 times a year.
The ratio increased from 7.79 in December 2019 to a peak of 9.35 in March 2020, indicating that the company was able to pay its suppliers more frequently during this period. There was a subsequent decline in the ratio to around 5.99 in June 2022, suggesting a slight slowdown in the pace of payables turnover.
However, Kennametal Inc managed to improve its payables turnover thereafter, reaching a ratio of 7.41 in June 2024. This could be a positive sign of the company's ability to manage its cash flow efficiently and maintain good relationships with its suppliers by paying off its obligations in a timely manner.
Overall, the payables turnover ratio for Kennametal Inc reflects a consistent performance in managing its trade payables, with occasional variations that may be influenced by factors such as operational efficiency, supplier terms, and overall market conditions.